China’s shadow-banking industry threatens its financial system

Shares in xinhua trust, a Chinese shadow lender, are selling for rock-bottom prices. 

The shadow lender’s demise was an early warning: the same forces that brought it down are now ripping through China’s 21trn yuan trust industry. 

Zhongrong, which managed about 630bn yuan in trust products at the end of last year, shows how pain has spread from the property industry to the financial system. 

Zhongrong is controlled by a much larger investment manager, called Zhongzhi, which has about 1trn yuan in assets under management across a vast array of divisions.

The Economist 28 August 2023

https://www.economist.com/finance-and-economics/2023/08/28/chinas-shadow-banking-industry-threatens-its-financial-system


Investors Fear China’s ‘Lehman Moment’ Is Looming

https://englundmacro.blogspot.com/2023/08/investors-fear-chinas-lehman-moment-is.html


China’s $138 Billion Shadow Bank

https://englundmacro.blogspot.com/2023/08/can-rest-of-globe-expand-if-china-is.html


inlägg med etikett China

https://englundmacro.blogspot.com/search/label/China


Shadow banks controlled $225 trillion at the end of 2020, or nearly half of all global financial assets

Hidden leverage is hard to quantify, obviously, but it has certainly grown among shadow banks during the long years of ultra-low yields. 

Global supervisors at the Financial Stability Board call these non-bank financial intermediaries.

Paul J. Davies Bloomberg 17 november 2022

Englund: Banks Need to Worry About Shadow Banks (englundmacro.blogspot.com)





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